last seen 11 weeks 19 hours agoHi -
I'm a UK citizen working for the British Government in New York. I recently became a permanent resident and have started to receive a gross salary. As my employer does not take out taxes i need to start paying Federal and State taxes. I had a couple of questions:
First, I noticed when looking at the instructions for the 1040 ES it said that i would need my 2007 tax return and instructions as a guide to figure out my income. As this is my first year filing taxes I do not have a 2007 tax return (previously my salary was tax abated). What should i do if i don't have this document?
Second, as i have only just received my green card and started to get a gross salary, i have already missed the first 2 estimated tax deadlines. When should i start paying taxes from? Do I pay it for the whole year and divide the amount between the last two payments or do i just pay from the date that my green card was issued?
Last, my wife would like to joint file our taxes. Is this possible? Can I still file estimated payments and what should we do when she files at the end of the year?
Any help that you can provide with these questions would be greatly appreciated. 
Arran.
Hello Arran and welcome to GuG!
I'm going to get you started with the IRS website and some links that may or may not be beneficial. There are too many circumstances to pinpoint exactly what needs to be done.
Take a look at these as soon as you can, because afterwards you will need to contact the IRS to be absolutely, positively sure that you are on the right path.
All clickable links will be BLUE in color. These links all go the IRS Website and are safe.
Arran - I don't know how much you've seen of the IRS website, but if you haven't, the links provided below will open you up to many more. If you get lost in it and need a hand, let me know. Since I know you are searching I'll check in here as often as I can during the day or you can contact me on my profile page. My email is set to accept.
The first page is about the The Green Card/Substantial Presence Test . I know you stated you have it and it looks to me that you pass this portion, but check it out if you would, so we are in agreement. Passing the Green Card means you don't have to bother with the Substantial Presence portion.
Publication 4588 Basic Tax Guide For Green Card Holders. This is a PDF file. Not much to it, it's a short read.
Forms and Publications Click this to get to the IRS Website quickly to download and save or print any forms/publications you need.
CLAIMING EXEMPTIONS: You can claim personal exemptions and exemptions for dependents according to the dependency rules for U.S. citizens. You can claim an exemption for your spouse on a Married Filing Separate return if your spouse had no gross income for U.S. tax purposes and was not the dependent of another taxpayer. You can claim this exemption even if your spouse has not been a resident alien for a full tax year or is an alien who has not come to the United States.
CAUTION: Your spouse and each dependent must have either a Social Security Number or an Individual Tax Identification Number in order to be claimed as an exemption or a dependent.
TAXPAYER IDENTIFICATION NUMBERS FOR ALIENS: If your dependent is a resident or nonresident alien who does not have and is not eligible to get an SSN, your dependent must apply for an individual taxpayer identification number (ITIN). For details on how to apply, see Form W-7, Application for IRS Individual Taxpayer Identification Number.
Will you need Power of Attorney if your wife can't sign?
Form 2848 Power of Attorney
Instructions for Form 2848
NONRESIDENT ALIEN OR DUAL STATUS ALIEN: A joint return generally cannot be filed if either spouse is a nonresident alien at any time during the tax year. However, if one spouse was a nonresident alien or dual-status alien who was married to a U.S. citizen or resident alien at the end of the year, the spouses can choose to file a joint return. If you do file a joint return, you and your spouse are both treated as U.S. residents for the entire tax year. See chapter 1 of Publication 519.
ESTIMATED TAX NOT REQUIRED: You do not have to pay estimated tax for 2008 if you meet all three of the following conditions.
You had no tax liability for 2007.
You were a U.S. citizen or resident alien for the whole year.
Your 2007 tax year covered a 12-month period.
You had no tax liability for 2007 if your total tax (defined on page 23 under Required Annual Payment—Line 14c) was zero or you did not have to file an income tax return. Various factors determine if this even applies to you. You have no return for 2007. You will discuss this with the Representative at the 1-800 phone number provided at the end of this message.
Publication 505 Tax Withholding and Estimated Tax
Resident and nonresident aliens also may have to pay estimated tax. Resident aliens should follow the rules in this publication, unless noted otherwise. Nonresident aliens should get Form 1040-ES (NR), U.S. Estimated Tax for Nonresident Alien Individuals.
You are an alien if you are not a citizen or national of the United States. You are a resident alien if you either have a green card or meet the substantial presence test.
See Publication 519 for more information about Form 1040-ES (NR) and withholding (chapter eight) and the substantial presence test (chapter one).
Call the IRS with your tax questions at 1-800-829-1040. Get comfortable with what you need to speak to the Representative about, (unless you already are) and explain your circumstances so they can provide you with the right course of action, proper forms and deadlines.
I cannot legally tell you what you need to do, you will have to get that information from the IRS Agent/Rep at the 1-800 number listed above or hire a CPA. There are a lot of questions that will impact exactly how you will proceed.
I don't want you to feel you are back to being alone, post if you need more guidance or help finding something else. The more I read, the more questions I had. If you like, we can run over what you need for your phone call and determine together if you are prepared.
Lynn
Hi Lynn and hot2na,
I wanted to say a really big thank you for all of the helpful information and resources that you have provided. i really appreciate you taking the time to look at my questions. To clarify a few of the points that you raised: I have been working at the UK Mission to the UN for the last five years. My salary was tax abated (essentially you're treated as a UK citizen living in the US and your UK taxes are taken out automatically). I married my wife last year and applied for a green card. My wife is a US citizen, has a job and a tax identification number and last april she filed a joint tax return. Now that my green card has come through, my salary is no longer tax abated - I receive a gross salary and have been told by my embassy that I have to start to pay estimated taxes using form 1040 ES - and i assume New York state taxes as well.
I'm pretty sure I pass the The Green Card/Substantial Presence Test. I don't think I'll receive a 1099 from my employer, though I might be mistaken - I'm a full time employee. I'm a little confused as to whether i meet the requirements to not pay estimated tax - i don't think i had any tax liability for 2007 - i didn't file a tax return, i was a resident alien on a g1 visa and i assume my tax year was 12 months. If that's the case when do i start to pay taxes? Not sure if I've provided the right information (or too much!). I'm going to have a good look through everything i have so far and also give the number you have suggested a call.
I am debating whether i should relent and go to H & R block, but I'll see. Thanks again for your help and for providing such a great site.
arran.
Hello again,
Honestly, I really hate to see you go to H&R Block. I will private message you sometime Sunday if that is soon enough for you. Saturday is mine and my hubby's anniversary so I'm leaving it open.
There are a few more questions that would be better done through pm. They aren't that personal but it would help if we straightened a few more things out before you called the number I gave you.
I can even type up a short list of important items that need to be discussed. Actually, I will be typing up that list anyway for us and then you'll have it to make sure you cover everything you need answered with just one phone call.
Unless you know of a reason that you need to do this now, I think we can settle it all out by Monday day. Should you need to do estimated payments, this next quarters amount is due sometime in September. (I do not know that date off the top of my head, but I'll have that info typed up for you). If you were supposed to have made the first two quarters estimated payments for 2008, there may be a penalty, but circumstances might help ease that.
I know it might all look overwhelming, but once we get it laid out on paper, it should be quick and painless. Except for the one to two hour on-hold wait you might have to endure while waiting to talk to an IRS Representative. Seeing as it isn't the middle of tax season, they shouldn't be too backed up. The phone call with the IRS is something I cannot do for anyone unless it's a POA, only the taxpayer involved gets this privilege.
Lynn
thanks again Lynn - I really appreciate you taking the time to help me.Sorry this reply is a little late - i have been stuck on nightshifts and overtime the last couple of days. Hope you had a nice weekend and anniversary - congratulations!
I believe the next estimated payment is around September 15th. I'd be happy to answer any more questions that you might have in this thread or by private message.
At the moment I am just going through the 1040ES and the IT 2105 MN - the NY state tax form - just trying to get my info together. As my green card was only issued in May and I've only started to receive a gross income since then, I'm assuming i only have to pay taxes from that date.
Thanks again Lynn - and i'll keep an eye out if you PM me.
Arran.
incredible! congratulations arran. our local tax goddess is offline right now. i'll message her to stop in and take a look at your thread. her name is LynnH. so keep an eye out for her!
welcome to GuG, arran!
Tuna ><(((( '> the other white meat!
hey - thanks a lot - i really appreciate it!
while your waiting around arran, take a look around the site. lots to see, learn, and comment on. you can start by giving yourself an introduction post. we'd love to give you a proper GrownUpGeek welcome! start here.
Tuna ><(((( '> the other white meat!
Thank you Tuna for alerting me. Hugs!